Hospitality and travel-tech firm OYO is reducing the number of shares it plans to sell through the initial public offering (IPO) following reduced valuations.
According to a Bloomberg report, the company aims to file fresh IPO documents soon. In the filing, the company will outline its plans to sell merely a third of the shares it originally intended.
Even as the hospitality industry revived after the pandemic slowdown, OYO has been continuing to report losses. Despite the reduced valuation, the company decided to go ahead with the IPO to ease the financial pressures on the company, reports Bloomberg.
However, it is still possible that OYO may change the targets before filing the IPO. This is the second IPO attempt by the Softbank-backed hotel aggregator. In January, OYO was asked by Sebi to refile the draft IPO papers with certain updates. In September 2021, OYO had filed preliminary documents with Sebi for a Rs 8,430 crore-IPO.
The IPO was delayed due to the then volatile market conditions making the company prepare to settle for lower valuations.
Meanwhile, the company estimates its revenue in FY23 to be more than Rs 5,700 crore, up 19 per cent from Rs 4,780 crore it had recorded in FY22. Sustained growth in India, Indonesia, the US and the UK and relevant optimisation as well as synergies in its European vacation homes business have led to better financials of the company, said CEO Ritesh Agarwal.